Paypal, Venmo Increase Instant Transfer Fees In US

Payment Platform, PayPal and Venmo has announced plans to change the fees related to their Instant Transfer offerings for U.S. consumers and merchants, to be more in line with the value they render.

PayPal stated that the charges are presently for users in the United States customers. These changes will apply on May 23, 2022, for Venmo customers and June 17, 2022, for PayPal customers.

“We continue to understand how important it is for PayPal and Venmo customers to have flexibility when accessing their money,” PayPal said in the release.

“That’s why we offer options like Instant Transfer, so customers can choose to transfer their money instantly to a bank account or debit card for a fee, as well as Standard Bank Transfers, so customers who can wait a few days can transfer their money for no fee, which will typically arrive within one to three business days.”

The new instant transfer charges will enable customers to easily transfer money to their bank accounts or debit cards for certain fees.

Currently, PayPal Consumer Account users pay 1.5% of the transfer amount with a minimum fee of $ 0.25 and a maximum of $15.

The same rate applies to Venmo Consumer and Venmo Business Profile account users.

Meanwhile, PayPal retains the instant transfer fee for business account users to 15% of the transfer amount.

However, the minimum transfer fee was increased from $0.25 to $0.50. Further, the existing $15 cap for the transfer fees was removed.

Therefore, there will no longer be a maximum fee-cap structure for the PayPal Business accounts. 

The report stated that standard bank transfer in PayPal and Venmo remains free.

However, the transaction takes around 1 to 3 business days from the moment you made the request for transfer.